Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5130 S$/US$. You have just placed an order for 31,000 motherboards at

image text in transcribed
image text in transcribed
Suppose your company imports computer motherboards from Singapore. The exchange rate is currently 1.5130 S$/US$. You have just placed an order for 31,000 motherboards at a cost to you of 230.80 Singapore dollars each. You will pay for the shipment when it arrives in 90 days. You can sell the motherboards for $161 each. a. Calculate your profit if the exchange rates stay the same over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Calculate your profit if the exchange rate rises by 11 percent over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Calculate your profit if the exchange rate falls by 11 percent over the next 90 days. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the break-even exchange rate? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) e. What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar? (Enter your answer as a positive value. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Calculate your profit if the exchange rates stay the same over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Calculate your profit if the exchange rate rises by 11 percent over the next 90 days. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Calculate your profit if the exchange rate falls by 11 percent over the next 90 days. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the break-even exchange rate? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.) e. What percentage decrease does this represent in terms of the Singapore dollar versus the U.S. dollar? (Enter your answer as a positive value. Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Profit b. Profit C. Profit s d. Break-even exchange rate e. Percentage decrease /$ %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance

Authors: Jeff Madura

3rd Edition

0321357973, 978-0321357977

More Books

Students also viewed these Finance questions

Question

What is the emergency-time-off policy

Answered: 1 week ago

Question

a. What department offers the course?

Answered: 1 week ago

Question

Identify ways to increase your selfesteem.

Answered: 1 week ago